Short DOW Industrial Index

The Dow Jones Industrial Average has broken through support at 7500 and now looks to be in a bit of a technical death spiral. I’d expect some short-term volatility and small bull rallies, but I suspect that they can’t be sustained and a price target of the low 6000’s could be feasible. I’ve taken a short position in a spread bet that tracks the Dow, average opening price was 7398 with a stop loss in at 7500.

Once the signal is confirmed and the trade moves into a reasonable level of profit, I’m likely to take a similar position against the Australian S&P500.